Wednesday, 28 October 2009
Price action ahead
EUR-USD price action turned choppy after another failed attempt to break mooted 1.4450 option barriers. The pair pulled back from 1.4420 early on and tested 1.4375 bids, which held on the first attempt, leaving narrow sideways action just adrift of 1.4400. Plain vanilla strike interest is reportedly influencing in the absence of large flows and ranges should remain narrow in to the European afternoon. U.S. releases and equity market movement is likely to drive price action ahead. The underlying trend is favorable for further EUR-USD gains, with recent longs targeting a test of 1.4500 ahead of the ECB policy meeting and Friday's U.S. NFP data. Intra-day, should see bids underpin between 1.4375 and 1.4350, while on the topside stops are building through 1.4450-70.